STAND. COM. REP. NO. 2757

Honolulu, Hawaii

RE:    S.B. No. 2164

       S.D. 3

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2164, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO EDUCATION,"

begs leave to report as follows:

     The purpose of this measure is to establish the Hawaii charter schools facilities fund to fund the repair, maintenance, and other facilities needs of charter schools.

     More specifically, the measure establishes the Hawaii charter schools facilities fund as a separate fund of the Charter School Administrative Office, and it establishes a Hawaii Charter School Facilities Fund Advisory Board to manage the fund.  The measure appropriates $2,500,000 to this new special fund for fiscal year 2008-2009.

     Testimony in support of the measure was received from the West Hawaii Explorations Academy, Kanu o ka Aina Learning Ohana, Kookakoo Corporation, and Halau Ku Mana Public Charter School.  Testimony opposing the measure was received from the Department of Budget and Finance.  Kamehameha Schools submitted comments. 

     Your Committee finds that charter schools provide an alternative learning experience for students and families, so it is fitting that funding for charter school operations, including facilities, be accomplished using creative, alternative approaches.  Your Committee further finds that the Hawaii charter schools facilities fund is modeled after the Hawaii 3R's program, which has enjoyed great success in its use of private financial and human resources.

     Your Committee has amended the measure by:

     (1)  Placing the Hawaii charter schools facilities fund in the state treasury, rather than Kanu o ka Aina Learning Ohana;

     (2)  Specifying that the Charter School Administrative Office shall administer the Hawaii charter schools facilities fund;

     (2)  Clarifying that the fund can receive grants and private donations, in addition to public funds, and that all moneys in the fund shall be used only for the purposes for which the fund was established;

     (3)  Exempting the fund from the central services assessment and the pro rata share of administrative expenses; and

     (4)  Deleting the specific amount appropriated to the fund; and

     (5)  Making necessary conforming amendments.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2164, S.D. 2, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2164, S.D. 3.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair